Wow Sunday already and time to be fabulously frugal again.  This week I want to talk about ways to improve your credit rating in collaboration with TSB Bank.  Not a sexy topic, but one that most people will need at some point.

What is a credit rating and why is it important? Our credit rating is what lenders look at before they decide to lend us money. It’s no longer just about whether you can get mortgages, credit cards and loans, it can also affect mobile phone contracts, monthly car insurance, bank accounts and more. A good score might even get you better rates. But as with everything in real life we all have bumps in the road and they might leave us with a less than ideal credit rating.

10 Ways to improve your credit rating

1. First of all you need to ensure the data is all correct.
2. If you are divorced or split up from someone that was living at the same address make sure you write to the credit reference agencies and ask for a notice of disassociation.
3. Cancel any unused credit cards.
4. Make sure you are on the electoral register
5. If you have had previous issues and have a credit card, then spent a small amount each month say £50 and ensure you pay it in full (ideally by direct debit) each month for a year.
6. Ensure you never miss a payment or are late with one on your current debts.
7. Don’t make lots of requests, space out your requests.
8. Use a landline on application forms.
9. Use direct debits for your bills.  Lenders like to see good money management skills.
10. Try to pay off any outstanding debt. Although unpaid credit and CCJs will remain on your file for 6 years, they’ll be marked as settled once you pay the debt.

Where to go for help

For free online debt counselling tailored to your individual needs, try the StepChange Debt Remedy tool, in association with TSB. StepChange Debt Remedy tool

Visit the government’s Money Advice Service for free and impartial advice on how to manage your money. Money Advice Service

The Scottish government also offers a debt advice service. Scotland’s Financial Health Service

Fabulously Frugal is taking a holiday

My fellow hosts  Cass at Diary of a Frugal Family, A Thrifty Mum and Emma at Mum’s Savvy Savings would like to say thank you for all taking part in Fabulously Frugal, but we are going to be taking a summer holiday.  Part of the reason that we are all as frugal as can be if that we all have children and love spending time with them, so in order to concentrate on our families over the summer holidays we have decided to give #FabulouslyFrugal a little holiday of its own.  We will all be back on Sunday 6th September in a whole new school uniform ready to start saving and planning for Christmas.

Thank you to everyone who has commented, linked and joined in.  We really appreciate your involvement and hope to see you again in September.